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FNKO vs. VZIO: Which Stock Is the Better Value Option?

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Investors looking for stocks in the Consumer Products - Discretionary sector might want to consider either Funko-A (FNKO - Free Report) or VIZIO Holding Corp. (VZIO - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Funko-A has a Zacks Rank of #2 (Buy), while VIZIO Holding Corp. has a Zacks Rank of #4 (Sell) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that FNKO is likely seeing its earnings outlook improve to a greater extent. But this is just one factor that value investors are interested in.

Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.

The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.

FNKO currently has a forward P/E ratio of 13.30, while VZIO has a forward P/E of 254.70. We also note that FNKO has a PEG ratio of 0.64. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. VZIO currently has a PEG ratio of 10.19.

Another notable valuation metric for FNKO is its P/B ratio of 3.06. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, VZIO has a P/B of 5.06.

These are just a few of the metrics contributing to FNKO's Value grade of B and VZIO's Value grade of D.

FNKO is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that FNKO is likely the superior value option right now.


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Funko, Inc. (FNKO) - free report >>

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